The current and new thresholds (other than for central government and utilities) are:

  Current threshold New threshold from 1 January 2020
Works £4,551,413 £4,733,252
Services/supplies £181,302 £189,330
'Light-touch regime' services* £615,278 £663,540
Small lots** for works £820,370 £884,720
Small lots** for services and supplies £65,630 £70,778
Concession contracts £4,551,413 £4,733,252

These will apply to all contracts let and procurements that begin after 1 January 2020.

* The Light Touch Regime applies to “social and other specific services” including health, education, catering, postal services and legal services.

** Where a contracting authority has a ‘single requirement’ for works, services or supplies, up to 20% of that requirement may be let as a separate contract, or as a number of contracts as long as each contract has a value less than the applicable small lots threshold.

For more information

If you would like advice or have any questions about the points raised in this article, please get in touch with Andrew Millross.